ECD Automotive Design Reports 30% Revenue Growth but Increased Net Loss in Latest Quarter

ECD Automotive Design, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company generated revenues of $6.44 million for the quarter, marking a 30% increase from $4.95 million in the same period last year. For the nine months ending September 30, 2024, total revenues reached $19.88 million, up from $14.70 million in the prior year, reflecting a 35% year-over-year growth. However, the company reported a net loss of $2.57 million for the quarter, compared to a loss of $0.24 million in the previous year, and a net loss of $7.46 million for the nine months, significantly higher than the $0.48 million loss reported in the same period of 2023.

The financial performance was impacted by increased operating expenses, which rose to $2.64 million for the quarter, up from $1.25 million a year earlier. This increase was primarily driven by higher general and administrative costs associated with being a public company, as well as increased advertising and marketing expenses. The company’s gross profit for the quarter was $2.01 million, a substantial increase from $0.96 million in the prior year, indicating improved margins despite the overall loss.

Strategically, ECD Automotive Design completed a business combination with EF Hutton Acquisition Corporation I on December 12, 2023, which has positioned the company for growth in the luxury automotive market. The merger has allowed ECD to expand its operations and product offerings, including the recent acquisition of assets from BNMC Continuation Cars LLC, which is expected to enhance its Mustang production capabilities. The company also plans to open a retail showroom in West Palm Beach, Florida, in partnership with One Drivers Club, furthering its geographic expansion and customer engagement.

Operationally, ECD has seen an increase in customer deposits, which stood at approximately $8.65 million as of September 30, 2024, indicating strong demand for its custom vehicles. The company has also reported a working capital deficit of approximately $3.5 million, which it aims to address through ongoing sales and financing activities. As of the end of the reporting period, ECD had 102 employees, including a skilled workforce dedicated to vehicle customization.

Looking ahead, ECD Automotive Design anticipates the need for additional capital to support its operations and growth initiatives over the next twelve months. The company is focused on improving its cash flow and operational efficiency while navigating the challenges posed by market conditions and increased competition in the automotive sector.